Celsius Network Dumps MATIC While Ethereum Foundation Sells ETH for DAI

According to Spot On Chain, a Twitter account that tracks the movements of large crypto holders, Celsius Network deposited 25.75 million MATIC (approximately US$21.26 million) into centralized exchanges (CEX) in the past 8 hours at an average price of US$0.826, of which 22.73 million MATIC was deposited in Binance, the world’s largest crypto exchange by trading volume. Celsius Network also transferred 3.02 million MATIC (approximately US$2.47 million) to Crypto.com, another popular crypto platform. The move came as the price of MATIC, the native token of Polygon, a scaling solution for Ethereum, dropped by more than 10% in the same period.

Celsius Network is one of the largest holders of MATIC, with over 34.09 million MATIC (approximately US$27.56 million) still in its address. Celsius Network offers up to 13.99% annual percentage yield (APY) on MATIC deposits, as well as the option to borrow against MATIC collateral at low interest rates. Celsius Network claims to have over 1.1 million users and more than US$20 billion in assets under management1.

Meanwhile, the Ethereum Foundation appears to have sold some of its ETH holdings via over-the-counter (OTC) transactions. Spot On Chain reported that the “Grant Provider: 0x9ee” wallet, which belongs to the Ethereum Foundation, moved 100 ETH (approximately US$253,000) to address 0xd77 and then received back 253,000 DAI (a stablecoin pegged to the US dollar) about 20 minutes later. The transaction suggests that the Ethereum Foundation exchanged ETH for DAI at a rate of US$2,530 per ETH, slightly below the market price at the time.

The Ethereum Foundation is a major funder of Ethereum-related projects, such as research, development, education, and community building. The foundation receives donations in various cryptocurrencies, mainly ETH, and uses them to support the Ethereum ecosystem. The foundation also holds a large amount of ETH in its wallets, which it can use to hedge against market volatility or sell for operational expenses. According to Spot On Chain, the Ethereum Foundation still holds 312,000 ETH (approximately US$794 million) in its wallets2.

The crypto market has been experiencing high volatility and uncertainty in recent weeks, as regulatory pressures, environmental concerns, and technical issues have affected the sentiment and performance of many cryptocurrencies. Both Celsius Network and the Ethereum Foundation have made strategic moves to adapt to the changing market conditions and pursue their long-term goals.

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